Eolus will develop and construct the Oyfjellet wind farm, on behalf of Aquila Capital, as part of the deal
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Swedish wind developer Eolus has signed an agreement with Aquila Capital to sell a yet-to-be constructed 400MW Norwegian wind farm, Oyfjellet.
The wind farm will be located close to Mosjøen in Vefsn municipality in the country. The preliminary purchase price is €30m (£27m) and the transaction includes the sale of a 100% stake in the project company holding the project rights and 15-year power purchase agreement with Alcoa Norway.
The transaction is expected to be closed in the autumn of this year, subject to several conditions such as a grant of detail plan, procurement of wind turbines, grid connection agreement and balance of plant agreements.
Eolus CEO Per Witalisson said: “The 400 MW Oyfjellet project is truly demonstrating the competitiveness of onshore wind power in the Nordics. Teaming up with an experienced investor as Aquila Capital makes it possible for us to start construction of the project as soon as the final conditions are met.
“The wind farm will supply Alcoa with renewable electricity for many years and provide local job opportunities both during construction and operation.”
Eolus to manage the construction of the wind farm
The two parties have also agreed on construction management, under which Eolus will manage the construction of the wind farm on behalf of Aquila. The revenues of Eolus during construction management have been estimated to be about €23m (£20.6m).
Eolus’s final revenues from both the share purchase agreement and the construction management agreement are expected to deviate significantly upwards or downwards from the preliminary figures depending on the successful delivery of the wind farm.
The wind farm is expected to be completed in the second half of 2021
Final purchase price will be calculated when the wind farm is completed, which is expected to take place during the second half of 2021. The construction of the wind farm will be financed by Aquila.
Aquila Capital co-founder and CEO Roman Rosslenbroich said: “We are truly delighted to become the sponsor of Project Oyfjellet on behalf of our client and we are looking forward to continuing our good cooperation with Eolus on this Nordic landmark project.
“Project Oyfjellet is not only impressive by its sheer magnitude and technical characteristics, it also stands exemplary for what it will take to create a sustainable future for the generations to come: Visionary developers like Eolus, dedicated investors like us and responsibly acting industry players like Alcoa – and of course supportive governments and authorities.”
Under a PPA signed in March 2018, all the electricity generated from the wind farm will be sold to Alcoa Norway.